They finally issued the dates for the rights offering. I'm contemplating adding to my position with the shares I'll be entitled to buy during the rights offering. Here's the news release:
Monday September 27, 8:45 am Eastern Time
Company Press Release
SOURCE: Samsonite Corporation
Samsonite Corporation Launches Rights Offering
DENVER, Sept. 27 /PRNewswire/ -- SAMSONITE CORPORATION (Nasdaq: SAMC - news) announced today that the record date for a dividend of transferable subscription rights to be distributed pro rata to holders of its common stock would be September 30, 1999, assuming the SEC declares Samsonite's registration statement relating to the $75,000,000 rights offering effective.
Each right consists of a basic subscription privilege to subscribe at the subscription price for one share of Samsonite's common stock and an oversubscription privilege to subscribe at the subscription price for additional shares of common stock offered but not purchased in the rights offering. The subscription price in the rights offering will be $6.00 per share. Samsonite is offering its shareholders $75,000,000 in rights, although there can be no assurance that this sum will be raised.
Rights certificates, together with a copy of the rights offering prospectus, are expected to be mailed on or about October 4, 1999. Samsonite expects that the rights will expire approximately 20 business days from the date of issuance, unless Samsonite extends the expiration date. Shares of Samsonite common stock issuable upon the exercise of the rights will be issued as soon as practicable following the expiration of the rights offering.
The $75,000,000 rights offering includes a $25,410,000 investment already made by Apollo Investment Fund, L.P. in April of this year designed to ``bridge' Samsonite to the closing of the rights offering. Apollo has also agreed to ``back-stop' the rights offering by purchasing any remaining shares of Samsonite common stock not subscribed for by other rights holders, up to $24,590,000. Artemis America Partnership has purchased 50% of Apollo's bridge investment and has agreed to purchase 50% of the amount that Apollo purchases under its back-stop. As a result of the bridge investment (which has already taken place) and the backstop (which will take place in the rights offering itself, if the rights offering is not fully subscribed), $50,000,000 of the $75,000,000 in rights will, at a minimum, be taken up.
Copies of the rights offering prospectus may be obtained from the offering's Information Agent, Corporate Investor Communications, Inc., 111 Commerce Road, Carlstadt, New Jersey 07072, toll-free telephone (877) 460-4352.
Samsonite is one of the world's largest manufacturers and distributors of luggage, marketing its products primarily under the Samsonite, American Tourister and Lark brand names.
A copy of the registration statement relating to the rights offering has been filed with the SEC but has not yet become effective. The rights may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release is not an offer to sell or the solicitation of an offer to buy. There will be no sale of the rights in any state in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. You should obtain and carefully review the prospectus relating to the rights offering before investing in, exercising or selling Samsonite rights.
Certain statements contained in this press release constitute ``forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results to be materially different from any future estimated results, performance or achievements expressed or implied by such forward-looking statements. In particular, there can be no assurance that the rights offering will be successfully completed or that, if completed, Samsonite will raise a particular amount of additional equity from the rights offering.
SOURCE: Samsonite Corporation |
